Schwab's New Options Tool Helps Investors Identify Optimal Trading Strategies
December 06 2005 - 8:00AM
PR Newswire (US)
Options Trading in Q3 at Schwab Up 72% Year-Over-Year SAN
FRANCISCO, Dec. 6 /PRNewswire-FirstCall/ -- Amid continued strong
growth in options trading, Charles Schwab & Co. announced today
the launch of the Options Strategy Finder, a web-based tool
designed to help options investors identify strategies that meet
their specific investment objective. "Schwab is constantly
investing in significant improvements to its options offer
underscoring its commitment to this segment of the market -- from
reductions in commissions this year to a host of platform upgrades
and new functionality including more sophisticated, multi-leg
options strategies," said Jeffrey M. Lyons, president, Active
Trader at Schwab. "Whether an investor trades options three times a
year or 30 times a month, this tool can help them evaluate both
simple and more complex options strategies." Daily average options
revenue trades at Schwab increased 72% in the third quarter of 2005
compared with the same period last year. This growth trend is
reflected industry-wide with reported year-to-date options volume
exceeding 1.18 billion contracts by the end of October, a 26.3%
increase over the same point last year, according to The Options
Clearing Corporation (OCC). The Options Strategy Finder, which is
accessible on schwab.com, presents investors with optimal potential
trading strategies best tailored to their outlook on a particular
security and their individual investing needs. It may also provide
no strategies, implying that establishing a position on that
particular security is not advisable at the current time. The tool,
which also includes help screens arrives at the results by first
prompting investors to answer six questions designed to evaluate
the criteria of a specific security and the ultimate investment
goal. Based on the investor's responses to the anticipated
direction, magnitude, velocity, implied volatility, expected
volatility and risk, the tool lists appropriate strategies. "The
goal of the Option Strategy Finder is to help clients find the
right strategy, more than finding just the right trade," Lyons
emphasized. About Schwab Options Services * Schwab Option
Specialists assist clients during market hours, as well as trading
specialists available 24 hours by 7 days a week * Street Smart
Pro(R), Schwab's most powerful trading software, now with multi-leg
options trading * OptionBuilder(R) online tool makes it easy for
traders to build, research and trade multi-leg options strategies *
Spread Search, an enhanced online option tool that help traders
identify and enter simple to complex option strategies * Streaming
Greeks and Options Pricing Tools help traders evaluate and forecast
option behavior and test trade strategies * A variety of
educational programs and tools, including online options seminars
available on Schwab.com * Account flexibility, including the
ability to trade long options in IRA accounts For more information
about Schwab's options trading products and services, visit
http://www.schwabat.com/options About Charles Schwab The Charles
Schwab Corporation (NYSE / Nasdaq: SCH), through its operating
subsidiaries, provides securities brokerage and financial services
to individual investors and the independent investment advisors who
work with them. With over 7 million individual investor accounts
and more than $1 trillion in client assets, The Charles Schwab
Corporation is one of the nation's largest financial services
firms. Its subsidiary Charles Schwab & Co., Inc. (member SIPC)
provides a complete range of investment services and products,
including an extensive selection of mutual funds; financial
planning and investment advice; retirement plans; referrals to
independent fee-based investment advisors; and custodial,
operational and trading support for independent fee-based
investment advisors through its Schwab Institutional division. Its
subsidiary Charles Schwab Bank (member FDIC) provides banking and
mortgage services and products. The corporation's other operating
subsidiaries include U.S. Trust Corporation (member FDIC) and
CyberTrader(R), Inc. (member SIPC) (A05-105 / 82043). These
companies' Web sites can be reached at http://www.schwab.com/,
http://www.schwabbank.com/, http://www.ustrust.com/, and
http://www.cybertrader.com/. Options carry a high level of risk and
are not suitable for all investors. Certain requirements must be
met to trade options through Schwab. Multiple leg options
strategies will involve multiple commissions. Please read the
Options Disclosure Document titled "Characteristics and Risks of
Standardized Options" before considering any option transaction.
Call your local Schwab office or write Charles Schwab & Co.,
Inc. 101 Montgomery Street, San Francisco, CA 94104 for a current
copy. DATASOURCE: Charles Schwab CONTACT: Alison Wertheim of
Charles Schwab, +1-415-636-5812, or ; or Mike Boccio of Intermarket
Communications, +1-212-754-5461, or , for Charles Schwab Web site:
http://www.schwab.com/
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